Current Weather
The Spy FM

Economy Picked Up In First Quarter: Grew At 2.5 Percent Pace

Filed by KOSU News in Business.
April 26, 2013

The U.S. economy grew at a 2.5 percent annual rate in the first quarter of 2013, the Bureau of Economic Analysis estimated Friday morning.

That’s modest growth, and was below the 3.2 percent pace economists had expected to hear about. But growth was up substantially from fourth-quarter 2012, when the economy expanded at a scant 0.4 percent annual rate.

The agency will issue revised estimates of first-quarter growth in each of the next two months, so the figure could change. The agency initially reported, for example, that gross domestic product shrank at a 0.1 percent annual rate in fourth-quarter 2012. Then it said there was 0.1 percent growth. On its third swing at the figures, it came up with the 0.4 percent estimate. The figures shift as more information comes in.

We’ll have more from the report and reactions to it as the morning continues.

Update at 8:55 a.m. ET. Not Much Real Change?

According to MarketWatch:

“The acceleration in growth in the early stages of the year stood in sharp contrast to the paltry 0.4% increase in gross domestic product in the fourth quarter of 2012. Yet the underlying strength of demand for U.S.-made goods and services was actually weaker in the first quarter. So-called real final sales rose just 1.5% — matching the smallest increase in two years.

“The softness in demand suggests little change in the overall pace of U.S. growth once unusual factors are stripped out. The economy has been expanding at about a 2% clip for the past two years.”

Update at 8:45 a.m. ET. News Could “Weigh On Stocks”:

“Given the smaller-than-expected increase and signs the economy has weakened in recent weeks, the GDP data will probably weigh on U.S. stocks,” Reuters writes. “It could also give ammunition for the Federal Reserve to maintain its monetary stimulus.”

Update at 8:40 a.m. ET. Consumer Spending Was Critical:

Growth was “buoyed by the strongest consumer spending in more than two years,” The Associated Press writes. “The strength offset further declines in government spending that are expected to drag on growth throughout the year.” [Copyright 2013 NPR]

Leave a Reply

12AM to 5AM The Spy

The Spy

An eclectic mix of the Spy's library of more than 10,000 songs curated by Ferris O'Brien.

Listen Live Now!

5AM to 9AM Morning Edition

Morning Edition

For more than two decades, NPR's Morning Edition has prepared listeners for the day ahead with two hours of up-to-the-minute news, background analysis, commentary, and coverage of arts and sports.

View the program guide!

9AM to 10AM The Takeaway

The Takeaway

A fresh alternative in morning news, "The Takeaway" provides a breadth and depth of world, national and regional news coverage that is unprecedented in public media.

View the program guide!

Upcoming Events in your area (Submit your event today!)

Streaming audio and podcasts

Stream KOSU on your smartphone

Phone Streaming

SmartPhone listening options on this page are intended for many iPhones, Blackberries, etc. with low-cost software applications available to listen to our full-time web streams, both News on KOSU-1 and Classical on KOSU-2.

Learn more about our complete range of streaming services

We're perfecting the patient experience - Stillwater Medical Center